1. Eva will put $5,000 in her tax deferred retirement account each year beginning one year from today and continuing for a total of 25 years. If her investment earns 8.00% per year, how much will she have at the end of 25 years?
Round your answer to the nearest whole dollar.
2. The nominal interest rate is 8.00% per year and the inflation rate is 4.00% per year. Compute the annual real interest rate.
Round your answer to the nearest hundredth of a percent.